Kin Mining NL (ASX:KIN) intends to open a 2:5 rights issue priced at 8 cents to raise up to $10.4 million to progress the Leonora Gold Project (LGP) in Western Australia.

Funding will also be used for accelerated exploration of new targets with the potential to deliver further significant resource growth at the LGP, and repayment of the outstanding US$3 million Sprott Facility.

These activities represent a pathway over the next 9 to 12 months to a fuller understanding of the overall gold endowment potential and optimised development scope of the LGP.

Kin’s managing director Andrew Munckton said: “Since the suspension of project development activities earlier this year, Kin has set about restoring the credibility of the LGP in a methodical and progressive fashion.

“This raising, and the planned use of the expected funds, represents the next step in this process.

“A range of technical work streams are in progress to optimise the scope and refine the elements of the LGP.

“Alongside this work, Kin continues to target both significant further resource growth and a greater understanding of the gold endowment potential that the LGP offers.

Moving towards a revised feasibility study

“These activities are collectively targeted to ensure that the LGP is rapidly moved towards a revised feasibility study in late 2019 that can define a robust and highly attractive project development case.”

Resource updates could be further catalysts

Kin’s recent drill program on, and review of, the Helens' deposit resulted in a 92% increase in Helen’s JORC resource.

The company plans to continue with the drilling programs that are delivering these JORC resource estimate upgrades.

Work is underway to update the Lewis deposit with plans to recommence drilling in the current quarter at the Helens, Lewis, Bruno and Mertondale deposits.